During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows Sales (@ $63 per unit) cost of goods sold (@ $35 per unit) Gross margin selling and administrative expenses Net operating income Year 1 $ 1,197, eee 665,eee 532, eee 384, eee $ 228,eee Year 2 $ 1,827,000 1,015,800 812, eee 334,800 $ 478, $3 per unit variable: $247.000 fixed each year, The company's $35 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($336,828 - 24,000 units) Absorption costing unit product cost $9 le 2 14 $ 35 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 24,000 24, eee Units sold 19, eee 29,800 Required: 1. Using variable costing, what is the unit product cost for both years? 2 What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (los) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory Absorption costing net operating income Year 2